The Top Easy Access Savings Discussion Area

Beddie

patgarrett said:

patpalloon said:

I have a bit of an aversion to Chip. I haven't tried it yet, I don't know what it is, maybe the fact that Chip themselves aren't FCSC protected - I know the bank where your money is held is though.

Can someone please explain to me how Chip makes money when they're not the holding institution? 

They are probably getting a small margin from the holding bank, so they might be paying 3.4% and getting 3.7%. 

allegro120

Beddie said:

patgarrett said:

patpalloon said:

I have a bit of an aversion to Chip. I haven't tried it yet, I don't know what it is, maybe the fact that Chip themselves aren't FCSC protected - I know the bank where your money is held is though.

Can someone please explain to me how Chip makes money when they're not the holding institution? 

They are probably getting a small margin from the holding bank, so they might be paying 3.4% and getting 3.7%. 

3.4% savings account is only a part of services they offer, most of their offerings have fees attached.

alternate

Actually I bet Chip are losing money on every deposit to this specific account.  Likely Clearbank are paying the market rate of interest, maybe even lower, and chip are topping it up out of their own budget.

First of all it is a promotion.  As the poster above says they offer other accounts and funds that likely do make a profit.  The easy access account is a loss leader that gets people in to the system.  Secondly, they are relatively new and are likely still burning through VC funding.  It is a common model to make a loss early on in the hope of growing big enough to start turning a profit - or be acquired by a bigger company.

GalacticaActual

Nationwide Building Society have finally published their new interest rates, applicable from 1st April 2023:

https://www.nationwide.co.uk/-/assets/nationwidecouk/documents/savings/branch-notices/smd648-changes-to-savings-accounts-1-april-2023.pdf?rev=3a594c2792c544e19b86baeda1f1ecf0

https://www.nationwide.co.uk/news-and-stories/bank-of-england-increases-base-rate/

savethepandas

Apologies, very off-topic.

The likely reason Nationwide can't offer the top savings rates is due to the high cost of keeping those branches open and staffed. Higher rates for savers need higher rates for borrowers.  I'm fine with using branchless online banks, but others aren't.

It's a choice, and I'm in favour of choice.

When I last visited them, I queried the lack of savings rate increase and I got a united front of 'We are prioritising keeping mortgage rates low'. Pointed out I didn't have a mortgage, the response was basically 'Tough'.

fly-catchers

Zopa now 3.34% for easy access. And 3.55% for the 95 day account.

jimexbox

And zopa 31 day 3.45 

cricidmuslibale

savethepandas said:

Apologies, very off-topic.

The likely reason Nationwide can't offer the top savings rates is due to the high cost of keeping those branches open and staffed. Higher rates for savers need higher rates for borrowers.  I'm fine with using branchless online banks, but others aren't.

It's a choice, and I'm in favour of choice.

When I last visited them, I queried the lack of savings rate increase and I got a united front of 'We are prioritising keeping mortgage rates low'. Pointed out I didn't have a mortgage, the response was basically 'Tough'.

When Nationwide releases its next set of adverts for TV, radio etc, I wonder if they will be honest enough to say “We’re here for you, we’re on your side, but only if you take out a mortgage with us, and certainly not if you save with us!”

Swipe

GalacticaActual said:

Nationwide Building Society have finally published their new interest rates, applicable from 1st April 2023:

https://www.nationwide.co.uk/-/assets/nationwidecouk/documents/savings/branch-notices/smd648-changes-to-savings-accounts-1-april-2023.pdf?rev=3a594c2792c544e19b86baeda1f1ecf0

https://www.nationwide.co.uk/news-and-stories/bank-of-england-increases-base-rate/

No increase for my flex saver issue 2 account still only paying 2.25% Just as well I only have £5K in there for emergencies only.

Middle_of_the_Road

cricidmuslibale said:

savethepandas said:

Apologies, very off-topic.

The likely reason Nationwide can't offer the top savings rates is due to the high cost of keeping those branches open and staffed. Higher rates for savers need higher rates for borrowers.  I'm fine with using branchless online banks, but others aren't.

It's a choice, and I'm in favour of choice.

When I last visited them, I queried the lack of savings rate increase and I got a united front of 'We are prioritising keeping mortgage rates low'. Pointed out I didn't have a mortgage, the response was basically 'Tough'.

When Nationwide releases its next set of adverts for TV, radio etc, I wonder if they will be honest enough to say something like “We’re here for you, we’re on your side, but only if you take out a mortgage with us, and certainly not if you save with us!”

As I was often reminded many years ago...
Neither either a lender or a borrower be